Bitcoin Traders, BTC owners should read this analysis as a reference for their actions

Bitcoin Traders, BTC owners should read this analysis as a reference for their actions

For the third time in a row, the Federal Reserve, on September 21, raised interest rates by 75 basis points (0.75 percentage points). 

Financial markets generally fell immediately after the announcement due to the plunge in share prices.

 

It is not abandoned, the crypto market is also affected. After the positive move, the price of the leading coin Bitcoin [BTC] immediately dropped below the $19,000 price range, after which it recovered slightly.

Further

According to data from CoinMarketCap, since dipping below $19,000 on Wednesday (September 21) the price per BTC has increased by around 5%. At press time, the coin has changed hands for $19,342.38.

While it appears to be on an upward trajectory, reports from crypto analytics platform CryotoQuant suggest that there will be more trouble for the king coin. 

According to CryptoQuant, the past few weeks have been marked by an increase in BTC inflows on exchanges. It is thought that the spike in this metric is an indication of an increase in short-term selling pressure for an asset. As confirmed by CryptoQuant, this growth in BTC inflows across exchanges “put selling pressure” on the largest cryptocurrency. 

Additionally, the crypto analytics platform noted that BTC's hourly funding rate has been significantly negative. According to him, this is another sign that “BTC derivatives traders are ready to go short.”

Source: CryptoQuant

Still trading at $19,000 and trading volume down 11% since the Fed's announcement on Wednesday, CryptoQuant analyst TariqDabil reckons for any significant price gains noted by CryptoQuant top coins, investors may have to wait a little longer. According to Dabil, the top coin "still needs time to recover."

Source: CryptoQuant

Before you buy dips

A look at BTC Adjusted Output Rate (ASOPR) shows that the current bearish cycle (which spans over 185 days) has so far been marked by many BTC investors selling at a loss. 

According to CryptoQuant IT Tech analyst, ASOPR has acted as resistance in previous bearish cycles. Whenever the price of BTC rises and ASOPR records a value of one (indicating that more investors are selling at a profit), this is usually followed by a "pretty strong rejection".

IT Tech finds that ASOPR has acted as a significant drag on BTC during the current bear market. As a result, a strong rejection can occur if ASOPR ends up registering a value of one.

Source: CryptoQuant

 

Sep 24, 2022

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